1 Contents Message from the Vice Chairman ................................................................................................................. 4 Message from the Managing Director & CEO ............................................................................................... 5 Message from the Chief Sustainability Officer ............................................................................................. 7 About the Report .......................................................................................................................................... 9 External Assurance ...................................................................................................................................... 11 About Tech Mahindra ................................................................................................................................. 15 Stakeholder Relations ................................................................................................................................. 18 Material Topics ........................................................................................................................................... 23 Governance ................................................................................................................................................. 29 Risks and Opportunities .............................................................................................................................. 33 External Environment ................................................................................................................................. 40 FutuRise – Strategy for Value Creation ....................................................................................................... 41 Value Creation for Customers ..................................................................................................................... 45 Supply Chain Management ......................................................................................................................... 49 Financial Capital .......................................................................................................................................... 51 Strategy and Approach ........................................................................................................................... 51 Intellectual Capital ...................................................................................................................................... 56 Strategy and Approach ........................................................................................................................... 56 Natural Capital ............................................................................................................................................ 67 Strategy and Approach ........................................................................................................................... 67 Enhancing our Human Capital .................................................................................................................... 82 Strategy & Approach ............................................................................................................................... 82 Social & Relationship Capital ...................................................................................................................... 96 Manufactured Capital ............................................................................................................................... 102 TCFD Report .............................................................................................................................................. 103 GRI Standards Content Index .................................................................................................................... 112 Mapping with CDSB Framework ............................................................................................................... 116 Mapping with SDGs ................................................................................................................................... 118 2 Innovation and Sustainability Business is at a new threshold. The external environment is having an incremental impact on companies, society and humanity. The four key challenges facing businesses - Volatility, Uncertainty, Complexity and Ambiguity - that represent the VUCA world are disrupting businesses and have a great potential to impact the value of organizations – both positively and negatively. External forces and risks like business disruption, geopolitical forces, climate change, extreme weather events, and water scarcity continue to pose risks to business and society. Extreme events like cyclones, hurricanes and floods are being evidenced globally. Water scarcity is leading to trans-boundary and regional conflicts on water sharing. There are conflicts between the sharing of natural resources between multiple stakeholders – society, industry, environment etc. All of these have a direct or indirect impact on the overall IT Industry. Thriving in this new business paradigm will require re-evaluating risks and opportunities, redefining and aligning business models and strategy with internal and external risks and constantly adapting to the demands of the disruptive world. Companies that take a futuristic approach and are prepared to ride on the innovative future will find the market scenario forward looking and positive. We expect the convergence of people, digitization, and technology in all the industry verticals and these outcomes are aligned with Tech Mahindra’s key objectives to run better, change faster and grow greater. With the phenomena of personalised customer experience gaining traction, enterprises are gearing up with digital transformation initiatives leading to “connected customer” for their services and products. Technology continues to drive change and creating value across businesses and will have to be used as an enabler for addressing many of the environmental and societal challenges at a macro or even at a micro level. We can expect broad level technology integration with many of the business and societal challenges to emerge. The solutions will be geared towards creating value for all the stakeholders. 3 Message from the Vice Chairman "Innovating - Towards a Sustainable Business Paradigm” is Tech Mahindra’s second Integrated Report. It provides an account of the company’s strategy, value drivers, approach to managing risks and opportunities, and performance in managing our Financial Capital, Intellectual Capital, Natural Capital, Human Capital, Social and Relationship Capital and Manufactured Capital. It has been a year of continuous efforts at Tech Mahindra. Despite volatilities in the external environment, we made satisfactory progress. Ensuring a sustained growth trajectory - Developing the Intellectual Capital Development of Intellectual Capital remained an organizational priority. It was achieved through strategic acquisitions, collaborations & partnerships and setting up new R&D centers – the Maker’s Labs. We collaborated with Affirmed Networks, Altiostar, and Cloudify to drive innovation, with AT&T on Project ACUMOS to make AI accessible to all, thus reiterating our focus and investment in technologies for the future. Continuous learning, unlearning and relearning – the Human Capital Priority Nurturing the Human Capital, a key priority marched in tandem with the development of the Intellectual capital. We invested in Centers of Excellence (CoEs) for re-skilling and right-skilling the associates through internal and external training on technology and domain. We tied up with world class content partners such as EdX & Pluralsight, and with AI based personalized learning aggregators like Edcast, among others, to make our associates future ready. We trained and certified 80,000+ associates in digital technologies, 20,000+ associates in automation and 50,000+ associates in emerging and digital technologies. Our focus on digital transformation and continuous re-skilling of our workforce to meet the future demands of our market space has been showing encouraging results. There was an increase in revenues from digital and new age solutions. Towards Carbon Responsibility – the Natural Capital Imperative As the world witnesses the adverse impacts of climate change, Tech Mahindra strives to be a part of the solution and enable the transition to a Low Carbon future not just for the company but also for its customers through products, platforms and solutions. We have a focused roadmap and targets on reducing the power usage efficiency of the data centers and reducing greenhouse gas emissions from the company’s activities. There has been satisfactory progress on the targets and it was heartening to see our commitment endorsed externally. I am proud to announce that Tech Mahindra was recognized as a world leader in the Dow Jones Sustainability Index - World Index for the fourth consecutive year. Rise for Good – TechM’s Philosophy for enhancing the Social and Relationship Capital We fulfill our commitment to society and ‘Rise for Good’ through Tech Mahindra Foundation - the CSR arm of the company. We have strengthened our focus on education, employability and disability. Corporate volunteering has been on the rise and it enables usto take forward the objective ‘Empowering through Education’. Through our flagship